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Today in History: Barings Bank declared insolvent after £827 million loss

2/26/2026

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Story summary

On February 26, 1995, Barings Bank, London's oldest merchant bank, was declared insolvent. This followed massive losses of £827 million incurred by Nick Leeson, the bank's head derivatives trader in Singapore, due to unauthorized trading in futures contracts. The collapse marked a significant event in banking history, highlighting risks in financial markets.

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Story summary

On February 26, 1995, Barings Bank, London's oldest merchant bank, was declared insolvent. This followed massive losses of £827 million incurred by Nick Leeson, the bank's head derivatives trader in Singapore, due to unauthorized trading in futures contracts. The collapse marked a significant event in banking history, highlighting risks in financial markets.